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Companhia Paranaense de Energia Pfd (ELP)
NYSE:ELP
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Companhia Paranaense de Energia Pfd (ELP) AI Stock Analysis

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ELP

Companhia Paranaense de Energia Pfd

(NYSE:ELP)

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Outperform 72 (OpenAI - 4o)
Rating:72Outperform
Price Target:
$9.50
▼(-0.21% Downside)
Companhia Paranaense de Energia Pfd's overall stock score is driven by solid financial performance and attractive valuation metrics, including a low P/E ratio and high dividend yield. While technical indicators suggest mixed momentum, the company's strategic achievements and recognition in ESG practices are positive. However, increased financial expenses and cash flow challenges are risks that need monitoring.
Positive Factors
EBITDA Growth
The consistent increase in EBITDA reflects strong operational performance and efficiency, which supports long-term profitability and business sustainability.
ESG Recognition
Recognition in ESG practices enhances the company's reputation and may attract socially conscious investors, supporting sustainable growth and competitive positioning.
Strategic Asset Divestments
Strategic divestments improve portfolio efficiency and liquidity, allowing the company to focus on core operations and potentially reduce leverage.
Negative Factors
Increased Financial Expenses
Rising financial expenses can pressure net income and cash flow, potentially limiting future investment capacity and impacting financial stability.
Cash Flow Challenges
Decreasing free cash flow may hinder the company's ability to fund operations and investments, posing risks to long-term growth and financial health.
Delay in Novo Mercado Migration
Delays in migrating to Novo Mercado can postpone governance improvements and liquidity benefits, potentially affecting investor confidence and market perception.

Companhia Paranaense de Energia Pfd (ELP) vs. SPDR S&P 500 ETF (SPY)

Companhia Paranaense de Energia Pfd Business Overview & Revenue Model

Company DescriptionCompanhia Paranaense de Energia Pfd (ELP) is a leading electric utility company based in Brazil, primarily focused on the generation, distribution, and transmission of electricity in the state of Paraná. The company operates in various sectors of the energy market, including hydroelectric power generation and renewable energy initiatives, providing essential services to residential, commercial, and industrial customers. ELP is committed to sustainability and energy efficiency, continually investing in modernizing its infrastructure and expanding its service capabilities.
How the Company Makes MoneyCompanhia Paranaense de Energia Pfd generates revenue primarily through the sale of electricity to its customer base in Paraná, which includes residential, commercial, and industrial sectors. The company earns money through regulated tariffs set by the government, which determine the price of electricity sold to consumers. Key revenue streams include the generation of hydroelectric power, which constitutes a significant portion of its energy supply, as well as revenues from transmission and distribution services. Additionally, ELP may engage in energy trading and enter into power purchase agreements that can enhance its income. Strategic partnerships with governmental and private entities to promote renewable energy projects also contribute to its earnings potential.

Companhia Paranaense de Energia Pfd Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted solid EBITDA growth, strategic asset divestments, and significant recognition in ESG practices. However, these positives were counterbalanced by increased financial expenses and a temporary delay in the Novo Mercado migration process. Overall, the sentiment is balanced with clear strategic achievements and some financial pressures.
Q2-2025 Updates
Positive Updates
Strong EBITDA Growth
EBITDA reached BRL 1.3 billion, a growth of 4.2% compared to the same quarter of last year.
CapEx Alignment with Projections
Capital expenditures in the period were approximately BRL 1 billion, in line with the projection of more than BRL 3 billion by the end of 2025.
Strategic Asset Divestments
Closure of small hydro asset sales as part of Copel's divestment plan, with the sale of the Figueira plant expected to conclude in the third quarter.
Recognition in ESG and Customer Satisfaction
Copel received the best ESG Award for the Electrical sector granted by Exame Magazine and ranked first in Aneel's Ombudsman Award for the third consecutive year.
Migration to Novo Mercado
Initiated migration to Novo Mercado, aiming for higher governance standards and increased share liquidity, pending shareholder approval.
Negative Updates
Increased Financial Expenses
Financial expenses increased by 38.7% due to higher debt for concession renewals, investments, and acquisitions, impacting net income.
Temporary CVM Deferral
The CVM deferred the General Meeting regarding migration to Novo Mercado for up to 15 days due to a request from a minority shareholder, causing a potential delay in the process.
Drop in Net Income
Recurring net income was BRL 452.4 million, down 9.5% compared to the second quarter of 2024.
Company Guidance
In the second quarter of 2025, Companhia Paranaense de Energia (Copel) reported a 4.2% increase in EBITDA, reaching BRL 1.3 billion, alongside a recurring net income exceeding BRL 450 million. The company's CapEx was approximately BRL 975 million, aligning with a full-year projection of over BRL 3 billion. Copel's leverage was reported at 3.1x, attributed to the temporary acquisition of Baixo Iguaçu, with expectations to decrease to 2.9x following asset sales. The company also highlighted successful divestments, including a small hydro asset and asset swaps with Eletrobras, enhancing portfolio efficiency. Further, Copel was recognized with the best ESG Award in the Electrical sector by Exame Magazine, and ranked first in Aneel's Ombudsman Award for the third consecutive year. The transition to Novo Mercado is underway, aiming to unify share classes and increase liquidity. The proposed migration is expected to conclude by the end of 2025, despite a temporary interruption by CVM, affecting less than 0.1% of the company's total capital.

Companhia Paranaense de Energia Pfd Financial Statement Overview

Summary
Companhia Paranaense de Energia Pfd demonstrates solid revenue growth and improving profitability metrics. While leverage has increased, it remains within a reasonable range. Cash flow metrics indicate some challenges, particularly with free cash flow, which could impact future investments or debt repayments. Overall, the company is financially stable but should monitor cash flow closely.
Income Statement
75
Positive
The company has shown consistent revenue growth with a TTM growth rate of 3.23%. Gross profit margin has decreased over the years, indicating potential cost pressures. However, the net profit margin has improved slightly in the TTM, reflecting better cost management. EBIT and EBITDA margins are stable, suggesting operational efficiency.
Balance Sheet
70
Positive
The debt-to-equity ratio has increased slightly, indicating a rise in leverage, but remains manageable. Return on equity has improved in the TTM, showing better profitability. The equity ratio is stable, reflecting a balanced capital structure.
Cash Flow
65
Positive
Free cash flow has decreased in the TTM, which could be a concern for liquidity. The operating cash flow to net income ratio is stable, indicating consistent cash generation relative to earnings. However, the free cash flow to net income ratio is negative, suggesting potential cash flow challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue23.87B22.65B21.48B20.54B23.98B18.63B
Gross Profit6.05B4.07B4.90B4.93B4.27B4.06B
EBITDA5.50B5.17B3.96B3.64B5.64B6.61B
Net Income3.04B2.81B2.26B1.11B4.95B3.90B
Balance Sheet
Total Assets60.74B57.38B55.82B49.70B49.54B46.78B
Cash, Cash Equivalents and Short-Term Investments2.90B4.16B5.65B2.68B3.49B3.22B
Total Debt20.21B17.57B15.23B12.73B12.04B10.08B
Total Liabilities35.18B31.75B31.63B28.57B27.36B26.53B
Stockholders Equity25.60B25.67B23.89B20.82B21.84B19.96B
Cash Flow
Free Cash Flow3.09B3.26B3.30B3.51B3.04B3.77B
Operating Cash Flow3.25B3.39B3.52B3.90B3.39B4.02B
Investing Cash Flow-6.83B-5.74B-3.14B-2.77B31.91M-1.67B
Financing Cash Flow-868.91M803.86M2.70B-1.92B-2.88B-1.79B

Companhia Paranaense de Energia Pfd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9.52
Price Trends
50DMA
9.03
Positive
100DMA
8.92
Positive
200DMA
7.80
Positive
Market Momentum
MACD
0.19
Positive
RSI
55.78
Neutral
STOCH
35.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELP, the sentiment is Positive. The current price of 9.52 is above the 20-day moving average (MA) of 9.38, above the 50-day MA of 9.03, and above the 200-day MA of 7.80, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 55.78 is Neutral, neither overbought nor oversold. The STOCH value of 35.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELP.

Companhia Paranaense de Energia Pfd Risk Analysis

Companhia Paranaense de Energia Pfd disclosed 49 risk factors in its most recent earnings report. Companhia Paranaense de Energia Pfd reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Companhia Paranaense de Energia Pfd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$6.59B5.1826.00%15.21%-3.27%-3.44%
76
Outperform
$6.85B12.2211.89%5.96%-5.28%14.50%
72
Outperform
$6.85B13.259.81%5.87%-5.28%14.50%
64
Neutral
$21.60B1,707.224.04%5.12%8.86%
62
Neutral
$3.85B20.936.42%4.37%-0.44%-17.46%
58
Neutral
$9.43B9.3546.27%5.29%-3.19%30.48%
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ELP
Companhia Paranaense de Energia Pfd
9.52
2.49
35.42%
ALE
Allete
66.27
4.87
7.93%
BIP
Brookfield Infrastructure
33.12
-0.15
-0.45%
CIG
Companhia Energetica Minas Gerais
2.08
0.22
11.83%
AES
AES
13.24
-5.70
-30.10%
ELPC
Companhia Paranaense de Energia Sponsored ADR
8.78
2.88
48.81%

Companhia Paranaense de Energia Pfd Corporate Events

COPEL Advances with Strategic Corporate Restructuring in August 2025
Sep 19, 2025

On August 22, 2025, Companhia Paranaense de Energia (COPEL) held its 212th Extraordinary General Meeting digitally, where significant decisions were made regarding its corporate structure and market positioning. The shareholders approved several key proposals, including the company’s entry into the Novo Mercado segment of the B3 stock market, amendments to the statutory rules for share conversion, and changes to the preferences of preferred shares. These decisions aim to enhance COPEL’s governance, align share classes, and improve its market competitiveness, potentially impacting its stakeholders positively.

COPEL Approves Migration to Novo Mercado, Offers Withdrawal Rights
Aug 26, 2025

On August 25, 2025, Companhia Paranaense de Energia (COPEL) held an Extraordinary General Meeting where shareholders approved the company’s migration to the Novo Mercado of B3 S.A., which included changes to the preferences of class ‘B’ preferred shares. This decision grants withdrawal rights to dissenting shareholders of ordinary shares, allowing them to be reimbursed for their shares if they disagree with the changes. The reimbursement is contingent on obtaining creditor waivers, and the exercise period for withdrawal rights is from August 26 to September 24, 2025.

Copel Shareholders Approve Migration to Novo Mercado
Aug 22, 2025

On August 22, 2025, Companhia Paranaense de Energia (Copel) held an Extraordinary General Meeting where shareholders approved the company’s migration to the Novo Mercado of B3 S.A. This move is part of Copel’s efforts to enhance its corporate governance practices. The approval includes measures such as obtaining creditor consent and calling a special meeting of preferred shareholders. This strategic shift is expected to strengthen Copel’s market positioning and provide greater transparency to its stakeholders.

Companhia Paranaense de Energia Schedules Digital Extraordinary General Meeting for August 22, 2025
Aug 19, 2025

Companhia Paranaense de Energia (Copel) has announced that its 212th Extraordinary General Meeting (EGM) will be held exclusively in digital format on August 22, 2025. This meeting was initially scheduled for August 4, 2025, but was postponed to allow for legal analysis of the proposals to be discussed. Shareholders are encouraged to participate and vote on relevant issues using a digital platform or a distance voting ballot. The meeting will include participation from the Executive Board and other key representatives, ensuring comprehensive discussions on the agenda items.

Copel to Hold Extraordinary General Meeting for Strategic Corporate Changes
Aug 19, 2025

On August 22, 2025, Companhia Paranaense de Energia (Copel) will hold an Extraordinary General Meeting exclusively in digital mode to discuss significant changes to its corporate structure and stock market positioning. The agenda includes seeking authorization to enter the Novo Mercado segment of B3, unifying share classes, and amending the company’s bylaws to improve governance and align with Novo Mercado regulations. These changes aim to enhance Copel’s market presence and shareholder value, although they are contingent on obtaining necessary approvals and waivers.

COPEL Resumes Extraordinary General Meeting for Novo Mercado Migration
Aug 18, 2025

On August 15, 2025, Companhia Paranaense de Energia (COPEL) received authorization from the CVM Board to resume its Extraordinary General Meeting (EGM), initially scheduled for August 4, 2025. The meeting is now set for August 22, 2025, to discuss the company’s migration to B³’s Novo Mercado. COPEL emphasizes the validity of previously submitted voting instructions unless shareholders choose to change them. This move reflects COPEL’s commitment to transparency and adherence to corporate governance standards, aiming to keep stakeholders informed.

COPEL Files Report with Forward-Looking Statements
Aug 11, 2025

On August 11, 2025, Companhia Paranaense de Energia (COPEL) filed a report under the Securities Exchange Act of 1934, signed by CEO Daniel Pimentel Slaviero. The report includes forward-looking statements reflecting management’s current views on future economic circumstances, industry conditions, and company performance, highlighting potential risks and uncertainties that could impact financial results.

Copel Reports Strong Q2 2025 Financial Results
Aug 7, 2025

In the second quarter of 2025, Copel reported a 4.2% increase in recurring EBITDA compared to the same period in 2024, reaching R$ 1,335.0 million. This growth was driven by strong performances in its generation and commercialization segments, with GenCo’s EBITDA growing by 12.6% and Elejor’s by 98.0%. However, the company faced challenges such as a decrease in TradeCo’s EBITDA due to lower sales margins. Additionally, Copel’s net operating revenue increased by 13.6% year-over-year, totaling R$ 6,225.2 million, largely due to a significant rise in electricity supply revenue.

COPEL Files Compliance Report with SEC
Aug 7, 2025

On August 7, 2025, Companhia Paranaense de Energia (COPEL) filed a report under the Securities Exchange Act of 1934, signed by CEO Daniel Pimentel Slaviero. The filing is part of the company’s compliance with regulatory requirements, reflecting its ongoing commitment to transparency and adherence to financial regulations.

Companhia Paranaense de Energia Submits Routine SEC Filing for July 2025
Jul 25, 2025

Companhia Paranaense de Energia has submitted a Form 6-K report for July 2025 to the Securities and Exchange Commission. This filing is a routine disclosure for foreign private issuers, ensuring compliance with U.S. regulations. The report does not indicate any significant changes or events impacting the company’s operations or market position.

COPEL Submits July 2025 Report with Forward-Looking Statements
Jul 22, 2025

On July 18, 2025, Companhia Paranaense de Energia (COPEL) submitted a report under the Securities Exchange Act of 1934, signed by CEO Daniel Pimentel Slaviero. The report includes forward-looking statements reflecting management’s current views on future economic circumstances, industry conditions, and company performance. These statements are subject to risks and uncertainties, and actual results may differ from expectations.

COPEL Reports Q2 2025 Grid Market Decline Amid Milder Weather
Jul 22, 2025

In the second quarter of 2025, COPEL reported a 0.7% decline in electricity consumption in its distribution grid market compared to the same period last year, primarily due to milder weather affecting residential and commercial demand. However, the industrial segment showed resilience, partially offsetting the reduction. Despite this quarterly decline, the year-to-date growth remains positive at 1.3%, reflecting the company’s stable performance amidst varying market conditions.

COPEL Announces 13.6% Increase in Annual Permitted Revenues for 2025-2026
Jul 16, 2025

On July 15, 2025, COPEL announced that the Brazilian Electricity Regulatory Agency (ANEEL) approved the Annual Permitted Revenues (RAPs) for its electricity transmission assets for the 2025-2026 cycle, effective from July 1, 2025. The RAPs for Copel Geração e Transmissão S.A. and its stakes will be R$1,811.2 million, marking a 13.6% increase, considering its full stake in Mata de Santa Genebra. This adjustment reflects a strategic enhancement in COPEL’s financial positioning, potentially impacting its market performance and stakeholder interests positively.

Companhia Paranaense de Energia Releases July 2025 Report
Jul 14, 2025

Companhia Paranaense de Energia, a Brazilian energy company, has released its report for July 2025 as a foreign private issuer under the Securities Exchange Act of 1934. The report does not provide specific details on recent events or changes in operations, leaving stakeholders without new insights into the company’s current positioning or future plans.

Copel Completes Acquisition in Baixo Iguaçu Hydroelectric Plant
Jul 1, 2025

On June 30, 2025, Copel announced the completion of its acquisition of Neoenergia S.A.’s stake in the Baixo Iguaçu Hydroelectric Plant. This transaction, valued at R$ 1,050 million, marks the conclusion of Copel’s Right of First Refusal, allowing it to proceed with selling the entire CEBI consortium to ENERGO-PRO PARTICIPAÇÕES S.A. for R$ 1,554 million. This strategic move is expected to enhance Copel’s operational and administrative structure, adding value to the company.

COPEL Submits Regulatory Report as Foreign Issuer
Jun 30, 2025

On June 30, 2025, Companhia Paranaense de Energia (COPEL) submitted a report as a foreign private issuer under the Securities Exchange Act of 1934. The report, signed by CEO Daniel Pimentel Slaviero, highlights the company’s compliance with regulatory requirements. This submission is part of COPEL’s ongoing efforts to maintain transparency and adhere to financial regulations, which is crucial for its operations and stakeholder trust.

Companhia Paranaense de Energia Files SEC Report for June 2025
Jun 30, 2025

On June 30, 2025, Companhia Paranaense de Energia (COPEL) filed a report with the Securities and Exchange Commission, as required by the Securities Exchange Act of 1934. The filing, signed by CEO Daniel Pimentel Slaviero, underscores COPEL’s compliance with regulatory requirements, reflecting its commitment to transparency and accountability in its operations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025